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Spotlight on Data Companies
The categories that comprise the BG Index include software, hardware and data firms. The latter group is the focus of this column. The index’s data companies vary from small firms, such as American Business Information (ABI), Omaha, Neb., and CACI international, Arlington, Va., to much larger Atlanta-bases Equifax, Inc. A fourth, Primark Corp., Waltham Mass, is a hybrid consulting and data firm and is between CACI and Equifax in size.
In addition, a few behemoths, which own mostly publishing companies as principal businesses and have strong information presences, are considered too large for the index. You may not recognize them instantly, but you’re probably familiar with the companies they own and products they provide. The companies are The Dun & Bradstreet Corp. (A.C. Nielsen, Data-quest, the Gartner Group Moody’s Investors Services and Pilot Software); R.R. Donnelley & Sons (prints Time, Newsweek and TV Guide and has an interest in a demographic firm); McGraw-Hill Companies (Business Week, Standard & Poor’s and textbooks); and Dow Jones (The Wall Street Journal, Telerate and Business Information Services). With the exception of Dun & Bradstreet, they have not had as strong a presence in the business geographics market as the firms currently included in the index. But if that changes, the companies greatly can impact data services. There also are geographic-related firms smaller than some index companies, but it’s been difficult to attain information about them. The table summarizes the data companies. The large publishers’ unique features are their moderate growth and attractive stock dividend rates, especially Dun & Bradstreet.
The BG index Reverses for a Gain
Reversing a two-month downward trend, eight of the 10 index stocks posted positive gains, with two companies, Primark and Intergraph Corp., Huntsville, Ala., registering double-digit gains of 21% and 41%, respectively. The losers, Trimble Navigation Ltd., Sunnyvale, Calif., and Houston-based Landmark Graphics, suffered only single-digit losses, allowing the index a 7% monthly increase. That’s nearly twice that of the Standard & Poor’s 500 Index (S&P 500) and increases both indexes 32% for the year.
Fall-quarter data company earnings nearly were on target with expectations. ABI’s fall quarter earnings were $.20, up from last fall’s $.16 a share. CACI’s fall earnings were $.22 vs. $.19 a year ago, and the company is expecting fiscal year earnings in mid-1996 of $.90 vs. $.77. CACI, aided by a recent acquisition, expects to continue on that course. Equifax had fall quarter earnings of $.50 vs. $.45 a year ago and posted nine-month earnings of $1.36 vs. $1.14 for the previous year. Primark is repaying a portion of its debt with a public offering of 4 million shares last December.
The accompanying chart indicates the weekly high-low fluctuations with the weekly closing index indicated by a square or diamond.
Associated Chart being Prepared and Available Soon.
Business Geographics, February, 1996; pp 58.
(This article was reproduced with permission from GIS WORLD Inc., and Business Geographics.)